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foreign risk management interest rates today is five percent and you wont take a loan in six months time in six months time its possible that the interest rates will have gone up so what are you doing now what are you doing to hedge against a rise in interest rates does it make sense thats what interest rate risk management is all about so companies can take loan as fixed interest or floating interests right this is the risk profile floating interest or variable interest now when a company takes a loan with fixed interest it means interest rates have a possibility of going up so its favorable to just take a loan with a fixed interest rates like ah five percent when they take floating its always based on the light bulb rate or the night ball rates London interbank rates okay so the library of the night box will give you like that in question so they can say plus 0.5 percent or plus 0.80 Im just giving you an example of what fixed interest and variable interest looks like okay comp
